Poughkeepsie Journal

SPECIAL COVERAGE

Debate over whether Central Hudson Gas & Electric Corp.’s frozen rates are still too hot or not is entering another phase.

The company on Monday filed a defense of its two-year rate freeze that was part of its recent acquisition by Fortis, Inc.

The argument is before the state Public Service Commission, placed there in petitions by three parties who opposed the merger and who maintain it won’t be good for consumers.

The critics said Central Hudson’s rate freeze merely keeps company profits at a level, 10 percent, that they would otherwise likely not be able to justify when the commission is favoring lower profit levels.

Central Hudson disputed that claim. They said that if the company were “to have filed a rate case (rather than proposing a rate freeze), the result would likely have been that a very significant increase in incremental revenue requirements would be proven.”

And that would have justified higher rates, they said, which would be based on planned capital investment. The freeze means they can’t get higher rates even though they will still make the investment.

The next step in this process could be a decision by the commission, although further comments by other parties, or replies by the petitioners, could still be made.

The petitions were filed by the Citizens for Local Power and the Consortium to Oppose the Acquisition; the Public Utility Law Project and Assemblyman Kevin Cahill, D-Kingston.

Daniel Duthie, attorney for the Citizens and Coalition petitioners, said he had yet to look over the company’s filings, at least one of which was made late Monday, and may respond. He said he was probably done, “unless I see something clearly outrageous.”

“This goes to the commission and the commission will decide it on whatever schedule they find appropriate,” Duthie said.

The company also replied to a call for rehearing the case, made by the same parties. Central Hudson disputed the claims that the commission erred when it decided not to hold formal evidentiary hearings. The company said it appears to be too late to raise issues of fact in dispute and go to a hearing.